Bitcoin vs Ethereum
Bitcoin vs Ethereum
Bitcoin and Ethereum are the most popular cryptocurrencies in the world.
Contents
History
Bitcoin is the first cryptocurrency in the world which appeared in 2009. It was developed by a person or a group of people under the pseudonym of Satoshi Nakamoto. The identity of the developer has not yet been established. Bitcoin is still the main cryptocurrency in the world, although, more than 1,000 different cryptocurrencies have appeared on the basis of its technology.
Ethereum is a platform for creating decentralized online services on the basis of blockchain using smart contracts. It was offered by the developer Vitalik Buterin in 2013. To date, this is the most popular platform for developing projects that go to the ICO. To work with the platform, a special cryptocurrency – ether has been developed.
Technical characteristics
Bitcoin. Bitcoin is a cryptocurrency, which is made by means of mining – that is, performing complex calculation operation to confirm transactions, the result of which is formed in blockchains. This is done using the Proof-of-work protocol. For each new block in the chain, its creator receives a reward.
The emission of bitcoins is limited to 21 000 000 coins, the issue of new coins is constantly reduced due to the complexity of tasks for performing cryptographic operations in mining. According to calculations, the emission of bitcoins will be completed by 2140. The constant complication of the mining process has resulted in the emergence of mining farms that consume large amounts of electric energy.
Ethereum. The emission of Ethereum is unlimited. Mining of new coins is based on the same Proof-of-work protocol as bitcoin. To mine new ether coins, the solution of complex cryptographic problems is also used. Large mining farms work to do this.
The developers of Ethereum plan to go to the new block formation protocol in the Proof-of-stake blockchain, when the computing capacity will not be of great importance when mining. So they want to minimize the resources for the emission of new coins.
In order to regulate the volume of the ether in the market while preserving unlimited emissions, Vitalik Buterin also suggests introducing excess ether “burning” mechanisms. For this purpose, certain operations inside the blockchain can become fee-based.
Application
Bitcoin is used as a means of calculation.
Ethereum is considered as a resource with which you can not only make exchange transactions, but also register smart contracts, share resources and so on.
Exchange rate and capitalization
As of November 28, 2017, the bitcoin rate is $ 9,980.99 per coin. The capitalization of the cryptocurrency exceeds $ 166.183 billion (more than half of the total capitalization of the cryptocurrency market). Upon both indicators, bitcoin is in the first place.
The Ethereum exchange rate on the same date is $ 476.789 for one ether, the capitalization of the cryptocurrency is $ 45.773 billion. Despite the fact that in November 2017 the ether lost the second place by the cost of one coin due to the rise in prices for Bitcoin Cash and Dash, only bitcoin outruns the cryptocurrency by capitalization.
Prospects
Bitcoin is the most widespread cryptocurrency in the world. Analysts predict its further growth and increased use. Already now, ATMs are installed all over the world, with the help of which it is possible to exchange fiat money for bitcoin (other cryptocurrencies also support the devices, but less often). You can buy real estate, various goods and pay services for bitcoins. Meanwhile, some experts speak about the financial bubble of bitcoin, which in the future will burst, leaving investors with nothing.
The Ethereum strategy assumes further development of a virtual platform for the execution of smart contracts. The new roadmap of the project, presented at the end of November by its founder Vitalik Buterin, considers the necessity to solve three problems simultaneously: security, privacy and scalability. This is especially important, considering the fact that according to the volume of transactions the Ethereum blockchain is in the first place. According to Butterin, the implementation of all stages will take from three to five years. Following the constant improvement of the platform experts predict the ether rate above $ 500 by the end of 2017.
See Also on BitcoinWiki
References:
http://telegra.ph/Vitalik-Buterin-predstavil-obnovlennuyu-dorozhnuyu-kartu-Ethereum-11-28
https://coinspot.io/currencies
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